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Clarifying misunderstanding regarding bank guarantee provision
November 17, 2014, 12:16 pm
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There seems to be some misunderstanding in a section of media in Kuwait regarding the Government of India’s decision to implement with effect from 11 September, 2014 the bank guarantee provision of KD 720 (equivalent to US$ 2,500) by every employer in Kuwait wishing to employ an Indian female domestic worker.

The Embassy wishes to clarify that this welfare measure has been taken by the Government of India as there have been some cases of maltreatment of and abuses suffered to by the Indian female domestic workers in Kuwait. By safeguarding the interests of Indian women domestic workers in Kuwait, the authorities in India consider it a necessary step towards strengthening the historically close and friendly ties between India and Kuwait.

It may be added that based on the recommendations of the Inter-Ministerial meeting held in the year 2007, the Government of India had decided to make it mandatory the bank guarantee provision of US$ 2,500 from the sponsors employing Indian female domestic workers in the GCC countries. This bank guarantee provision has long been implemented by Indian Embassies in other Gulf countries (viz., Kingdom of Saudi Arabia, Oman, United Arab Emirates, Qatar and Bahrain).

The Embassy would like to stress that the submission of KD 720  bank guarantee by a sponsor in Kuwait  is not a commercial transaction as the  Embassy is only asking for a bank guarantee, not a bank deposit.  The bank guarantee measure would render benefits to both parties (i.e., employer and employee), as small issues of disagreements/ disputes will not have to go to legal authorities and instead be sorted out locally.   

The bank guarantee will be returned to the sponsor in Kuwait, once Indian female domestic worker has returned to India, with his/her sponsor in Kuwait fulfilling his/her contractual obligations.

The Embassy seeks understanding of the media in Kuwait on this issue for strengthening further friendly relationship between India and Kuwait

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